Thomas1195
Banned
Well, then the fiat money era begins, like IOTL. In this era, Germany now can keep their currency artificially low, while Britain still sits there like a dummy (like Mr Trump talked about the US).This long run can be very long, though; Italy, for example, still has a lower per capita GDP than Germany despite having many decades to "catch up".
I don't see how the breakdown of the British-backed gold standard would cause Germany to lose access to the world market. Higher transaction costs because of non-uniform monetary standards would only decrease trade, and that over a period of time, not plunge the world back into a Stone Age level of global autarky. They might be trading less, but they'll still be trading...